Hong Kong’s financial watchdog took to the internet, in an official blogpost and on a Friday morning, an article that talked about the risks involved in the crypto market today. As history may have it, SFC Hong Kong issued their first warning in Feb, this year.
Their first warning strongly adviced it’s citizens to stay out of crypto and crypto related investments, like ICO’s. The first article published on this issue urged investors to go into thorough research on any project they wish to invest on, before they actually investing on it.
In a recent blogpost, Hong Kong’s SFC still talked about the potential risks of dealing with crypto exchanges and investing in ICOs. It further stated that cryptocurrency technology is dubious and one has to supervise the perils that can threaten the economy of the country. The financial regulators finally took it upon themselves to educate it’s citizens on how to tackle the current situation at hand.
So, they decided that they will be keeping a close watch on the cryptocurrency market and as well, they will be constantly revising the existing laws governing the new technology within the country. The SFC is indeed taking strict action to introduce definite regulatory policies this year against local crypto exchanges, ICOs and warning the public about risks involved in crypto-investments.
Few economists have notified that the concept of cryptocurrency is unreliable as it has no intrinsic value. Hong Kong, being an independent territory of China, has a seperate political system and is open to trading in the cryptocurrency market. Therefore, many crypto-related businesses chose to move to the more crypto-friendly Hong Kong. For example, major Chinese Bitcoin conference BitKan decided to move to Hong Kong from Beijing.